Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 22 Aug, 25 | SD | Buy | USD 11.52 | USD 12.2 | USD 13.0 | 45 days | Closed |
12.85%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil and natural gas primarily in the United States Mid-Continent. As of December 31, 2022, it had an interest in 1,471 gross producing wells. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.
Production Increase – Daily production grew from 15.0 MBoe/d to 17.8 MBoe/d, a 19% increase, with oil output up 46%
Net Income Growth – Net income rose from USD 8.8M to USD 19.6M, marking a 122% increase
Higher Depletion Expense – Depletion rose from USD 3.19/Boe to USD 5.12/Boe, reflecting heavier production impact on reserves
Decline in Realized Oil Price – Realized oil price fell from USD 79.54/bbl to USD 62.80/bbl, a 21% decline, reducing revenue potential
SandRidge Energy faces material exposure to commodity price volatility, particularly in crude oil and natural gas, which could significantly impact revenues, cash flows, and shareholder returns
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 11.52 | 10.45 | 12.2 | 13.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Revenue and Profitability Growth: SandRidge Energy, Inc. delivered robust financial results for the quarter ended June 30, 2025. The company reported net income of USD 19.6 million, equivalent to USD 0.53 per share, a significant increase from USD 8.8 million or USD 0.24 per share in the same quarter of 2024. Adjusted net income also rose, reaching USD 12.2 million or USD 0.33 per share, up from USD 6.4 million or USD 0.17 per share in Q2FY24. Adjusted EBITDA grew to USD 22.8 million, reflecting higher production volumes and operational efficiencies.
Production Expansion and Asset Performance: Production volumes averaged 17.8 MBoe per day, up 19% year-over-year, driven primarily by the Cherokee acquisition and new operated development wells. Oil production surged 46%, contributing meaningfully to the revenue mix, while natural gas volumes grew modestly. The company reported its first Cherokee development well achieving a peak 30-day IP rate of ~2,300 Boe per day, highlighting strong asset productivity.
Revenue and Commodity Price Trends: Total revenues increased to USD 34.5 million, a 33% year-over-year rise compared with Q2FY24’s USD 26.0 million. This was attributed to higher production levels despite weaker oil prices. Realized oil prices averaged USD 62.80 per barrel, down from USD 79.54 per barrel in the prior year. Natural gas realizations improved significantly to USD 1.82 per Mcf, compared with USD 0.66 per Mcf in Q2FY24, partially offsetting the decline in oil realizations.
Cost Discipline and Operational Efficiency: Lease operating expenses decreased to USD 6.6 million or USD 4.05 per Boe, compared with USD 8.7 million or USD 6.41 per Boe in Q2FY24. This reduction was partly due to a one-time accrual adjustment and continued efficiency gains. General and administrative costs were stable year-over-year, with adjusted G&A declining to USD 1.48 per Boe, down from USD 1.85 per Boe. These measures reflect management’s focus on maintaining cost competitiveness while expanding production.
Cash Flow and Balance Sheet Strength: The company generated USD 22.9 million in operating cash flow, up nearly 100% year-over-year. Free cash flow for the quarter was USD 9.8 million, higher than USD 9.0 million in Q2FY24. Liquidity remains robust, with USD 104.2 million in cash and no outstanding debt, positioning SandRidge with financial flexibility for future development and shareholder returns.
Shareholder Returns and Dividend Growth: SandRidge continues to prioritize shareholder value through dividends and repurchases. The Board declared a quarterly dividend of USD 0.12 per share, representing a 9% increase over the previous payout. Year-to-date, the company repurchased 0.5 million shares for USD 6.0 million under its USD 75 million authorization, leaving USD 69 million available for further buybacks. Total dividends declared since 2023 now exceed USD 162 million, underscoring the company’s strong capital return framework.
Strategic Outlook and ESG Commitment: Looking ahead, the company intends to advance its Cherokee development program with disciplined capital deployment. Management is also evaluating potential mergers and acquisitions while optimizing production through artificial lift conversions and recompletions. On the ESG front, SandRidge maintains a “no routine flaring” policy, transports produced water primarily via pipelines, and powers most sites with electricity. These initiatives demonstrate the company’s long-term focus on sustainability and operational efficiency.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on SandRidge Energy, Inc. (NYSE: SD) at the closing market price of USD 11.52, as on August 21, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas E&P
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SD SandRidge Energy Inc |
-0.22 1.56% | 13.88 | 3.18 | - | 3.01 | 1.09 | 1.66 | 2.47 |
| COP ConocoPhillips |
-2.7 2.84% | 92.26 | 12.82 | 11.12 | 2.24 | 2.90 | 2.47 | 5.63 |
| CNQ Canadian Natural Resources Ltd |
-0.325 1.02% | 31.54 | 15.51 | 14.24 | 2.37 | 2.92 | 2.26 | 5.34 |
| EOG EOG Resources Inc |
-2.44 2.33% | 102.30 | 9.09 | 8.98 | 3.01 | 2.57 | 2.97 | 5.16 |
| PEXNY PTT Exploration & Production |
- -% | 4.74 | 25.79 | 24.51 | 5.92 | 3.66 | 0.05 | 0.08 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 21,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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